– Brookfield and Oaktree have agreed on a proposed transaction for Brookfield to acquire the remaining 26% of Oaktree it does not already own.
– Upon completion, Brookfield will own 100% of Oaktree, strengthening its market-leading global credit platform.
– Bruce Flatt, CEO of Brookfield, highlighted the success of the six-year partnership, noting 75% growth in Oaktree’s assets under management and expansion in private credit and wealth solutions. Flatt stated that full ownership will enhance collaboration, broaden Brookfield’s credit franchise, and support long-term value creation for investors.
– Howard Marks, Co-Chairman of Oaktree, emphasized shared values of disciplined investing and integrity, calling full integration a natural evolution to strengthen Oaktree’s position within Brookfield. Marks confirmed that Oaktree will remain central to Brookfield’s credit strategy and sees significant opportunities for future growth.
– Transaction is valued at approximately $3 billion for the remaining equity interests.
– Oaktree shareholders can choose consideration in cash, shares of Brookfield Asset Management-CA. (BAM), or shares of Brookfield Corporation (BN), subject to limitations.
– BAM shares will have a two-year lock-up and BN shares a five-year lock-up, aligning long-term interests.
– Each of BAM and BN will repurchase shares equivalent to the number issued, minimizing dilution to existing shareholders.
– Leadership continuity includes Howard Marks and Bruce Karsh remaining in senior roles, Marks continuing on BN’s Board, Karsh joining BAM’s Board, and
– Robert O’Leary and Armen Panossian becoming Co-CEOs of Brookfield’s credit business.
– Including Oaktree, BAM generated approximately $2.8 billion in fee-related earnings over the last 12 months.
– The transaction will strengthen BN’s distributable earnings through increased participation in Oaktree’s carried interest and investments.
– Expected closing is in Q1 2026, pending regulatory approvals and customary conditions.
– The deal is expected to be accretive to both BAM and BN.
– The transaction reinforces the U.S. as BAM’s largest market, with over $550 billion of assets managed, more than 50% of employees based in the U.S., and approximately 50% of revenue generated there.
– The deal enhances BAM’s inclusion in U.S. market indices and deepens its U.S. presence.
– Transaction funding will be approximately $1.6 billion from BAM and $1.4 billion from BN, reflecting current ownership proportions.
– BAM will acquire an incremental 26% interest in Oaktree’s fee-related earnings, carried interest (net of BN’s 33% royalty), and partner manager interest in 17Capital and DoubleLine.
– BN will acquire an incremental 26% interest in Oaktree’s balance sheet investments and the remaining carried interest.
